Asserting this today, Nagaland Chief Minister Neiphiu Rio said that after attaining statehood in 1963, the government has had to spend more time and efforts in maintaining law and order rather than on development.
Official sources said that in his speech during the interaction with visiting members of the 13th Finance Commission of India today in Kohima, Rio highlighted the insurgency problem of Nagaland since the 1950s.
He drew the attention of the Commission to Clause 11 of the 16-Point Agreement, leading to the creation of the state of Nagaland on December 1, 1963, and to supplement the state by financial assistance from the consolidated fund of India.
Rio pointed out that Nagaland is a ‘backward state’ having no industrial activity, which is restricting the economic growth of the state.
There is no central-public sector undertaking in the state as well, he said. Rio also went on to state that the geographical fallacies like the ‘unstable soil structure of the Himalayan foothills’ and the topography of Nagaland act adversely.
These factors keep the state away from the centers of developed communication and commerce and industry.
Making these contentions, the Chief Minister requested the Commission that all outstanding central loans may be written off, at least in respect of the Special Category States. This ought to be, besides providing a special grant to the state to pay off all the outstanding institutional loans.
The Chief Minister also requested that the Commission take the projected additional requirement of funds on account of pay revision during the 5 years period to be covered by the Commission into account.
The state has projected a total maintenance grant of Rs. 4653 crore with the request that these may be considered without imposing conditionality on past expenditures.
Rio requested to the Commission to recommend grants on maintenance of capital assets, upgrade and State-specific needs as suggested in the memorandum submitted.